August 4, 2017

Chorus Aviation Inc. (CHR on TSX), Aug 4/17: C$8.02, 52-week range: 8.04-5.75, div: C$0.48, Yield: 5.99%

Halifax, NS-based Chorus through its subsidiary Jazz Aviation operates Air Canada Express and Jazz Technical Services.  Under Air Canada Express, Jazz with a fleet of 117 Bombardier aircraft operates scheduled passenger service to 73 destinations in Canada and the US.  Under Jazz Technical Services, JTS is dedicated to heavy maintenance, repair and overhaul of Bombardier aircraft to its primary customer Air Canada as well as to third parties.  Chorus has been leasing its owned regional aircraft into Jazz’s Air Canada Express operation since 2009 and in January of 2017 it established Chorus Aviation Capital with the intention to become a leading, global provider of regional aircraft leases and support services.  This could produce a promising growth avenue for the company.  Chorus will provide 2Q results on August 10.

Student Transportation Inc. (STB on TSX), Aug 4/17: C$7.35, 52-week range : 8.25-6.82, div :C$0.55, Yield:7.52%

Now in its 20th year Student Transportation with a relatively young fleet of over 13, 500 vehicles is an important provider of school bus transportation services mainly in the US and to a lesser degree in Canada.  STB takes pride in their SafeStop bus tracking mobile app that permits both the parent as well as the school administrator to perceive the location of the bus, arrival time, etc.  STB has been paying dividends on a monthly basis since going public in 2004, the current rate being $0.03667US, or the equivalent of 55 cents Canadian per year.

Uni-Select Inc. (UNS on TSX), Aug 4/17: C$27.84, 52-week range: 37.03-27.64, div: C$0.37, Yield: 1.33%

Uni-Select is a leader in the distribution of automotive refinish and industrial paint and related products in North America as well as a leader in the automotive aftermarket parts business in Canada.  Its banners include BUMPER TO BUMPER, AUTO PARTS PLUS and FINISHMASTER. Sales run at about US$1.3 billion. The company has just completed the acquisition for US$266 million of the business known as THE PARTS ALLIANCE, the 2nd largest nationwide independent distributor of automotive aftermarket parts in the United Kingdom. This may lead to further acquisitions in the large and fragmented UK and Ireland marketplace as well as provide entry into Europe. Financial results for Q1 in 2017 fell short of analyst expectations which contributed to a drop of 25% in the UNS share price but the recently reported Q2 earnings demonstrated improvements in operating margins which along with the UK acquisition might address that decline.

Vermilion Energy Inc. (VET on TSX and NYSE), Aug 4/17: $40.71, 52-week range: $58.98-38.60, Div: $2.58, Yield: 6.34%.

Calgary, Alberta-based Vermilion is an international energy producer involved in the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia.  In addition to now having a 20% interest in the Corrib gas field offshore Ireland VET has also taken over from Shell Exploration Company B.V. the operatorship of the project. Oil production has been increasing in Alberta, France (where it has been operating now for 20 years) and in the US.  The company has recently obtained further permits to drill in the Netherlands and is expanding in Germany.  As a result of steady growth and geographical diversification Vermilion, unlike some of its peers, has never had to reduce its monthly dividend and this trend appears to be sustainable.

Back to main page